Wouldnt I want a sales tax to protect my business? Create an even playing field?

Yes, YOU would want that, but your CONSUMER would not want YOUR idea of a "level" playing field.

Instead of taxing your opponent, the free market should decide. How is he able to under cut you? Is it that his product is lesser quality? Is he trying to sell at a loss? Or, does he have a better business model than you?

If your product/business is better, than you will develop a reputation as having a better product. This forces your competition to either go out of business, or strive to develop a better business/product. If your competition improves, or your competition was better to begin with, then it forces you to make a better business/product.

This is how innovation comes about. The consumer gets the best products at the best price. The businessman runs his business in order to gain the most consumers for the most profit.

When government gets involved....it becomes SNAFU. When you open the door and welcome taxes, be sure more than you expect will follow. Along with taxes comes regulation. Of course, don't expect your competition to sit idly by and watch you destroy him.......he is going to lobby to raise taxes and regulation against YOU.

Under this leftist model (think GM and GE) the object isn't product innovation, but government/regulatory innovation. The consumer gets inferior products at a ridiculous price; not to mention, the "law of unintended consequences" that screws over businesses/products that aren't even related to yours.

27 posted on 07/16/2012 3:13:40 PM PDT by Repeat Offender
(Why do cops have more lenient ROEs when facing us than troops in combat facing suicidal islamists?)

You've made a great case to eliminate the sales tax entirely. What you have not done, however, is demonstrate how having a state government apply sales taxes differently for the same product is somehow a "free market" at work.

Instead of taxing your opponent, the free market should decide. How is he able to under cut you? Is it that his product is lesser quality? Is he trying to sell at a loss? Or, does he have a better business model than you?

Under the current taxation rules, your opponent doesn't need to do anything to undercut you. If he sells the same quality product, at the same price, his product will cost the consumer ~3-8% less than yours, simply because he is out of state and you are not.

When government gets involved....it becomes SNAFU. When you open the door and welcome taxes, be sure more than you expect will follow. Along with taxes comes regulation. Of course, don't expect your competition to sit idly by and watch you destroy him.......he is going to lobby to raise taxes and regulation against YOU.

You're right. Excelt that government is ALREADY involved. The taxation rules already set by the government give out of state merchants an advantage. Taxing internet purchases may not be a free market solution, but leaving the current system in place may not be a free market solution either.